Ready to unlock a world of banking perks and privileges? Let's dive into what it truly means to be a "Preferred Rewards" member with Bank of America!
Understanding Your "Preferred Bank of America" Status: A Step-by-Step Guide to Unlocking Exclusive Benefits
Being a "Preferred Bank of America" client isn't just a fancy title; it's a tiered program that rewards your overall relationship with Bank of America and Merrill (formerly Merrill Lynch). It's designed to give you more back for the banking, investing, and lending you do with them. Think of it as a loyalty program, but with significant financial advantages.
This guide will walk you through everything you need to know, from how to qualify to the incredible benefits you can enjoy.
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| What Does Preferred Bank Of America Mean |
Step 1: Discovering Your Preferred Rewards Eligibility – Are You Already In?
Let's start with a quick check! Have you ever wondered if you're already enjoying the perks of Preferred Rewards without even knowing it? Many clients are.
- Log in to your Bank of America online banking or Merrill account. Once you're in, look for a section related to "Preferred Rewards," "Rewards," or "Benefits." Often, there will be a prominent banner or link informing you of your current tier.
- Check your monthly statements. Sometimes, your Preferred Rewards status is noted there.
- Contact Bank of America directly. If you're unsure, a quick call to customer service or a visit to a branch will clear things up. They can tell you your current tier and what you need to do to reach the next level.
Why is this important? Because even if you don't actively participate in all aspects of the program, simply qualifying can unlock better rates, waived fees, and other advantages!
QuickTip: Focus more on the ‘how’ than the ‘what’.
Step 2: Demystifying the Qualification Criteria – How to Become Preferred
The core of the Preferred Rewards program revolves around your combined balances across eligible Bank of America and Merrill accounts. This means they look at your total assets held with them.
Sub-heading 2.1: The Combined Balance Thresholds
There are several tiers, each with increasing balance requirements and, consequently, greater benefits. The specific thresholds can change, so always refer to the official Bank of America website for the most up-to-date figures. However, generally, they look something like this:
- Gold Tier: Requires a combined balance of $20,000 to $49,999.
- Platinum Tier: Requires a combined balance of $50,000 to $99,999.
- Platinum Honors Tier: Requires a combined balance of $100,000 to $999,999.
- Diamond Tier: Requires a combined balance of $1,000,000 to $9,999,999.
- Diamond Honors Tier: Requires a combined balance of $10,000,000 or more.
Sub-heading 2.2: What Counts Towards Your Combined Balance?
This is where it gets interesting! It's not just your checking or savings account. Bank of America takes a holistic view of your relationship. Generally, the following eligible balances are counted:
- Your average daily balance over a three-month period in Bank of America checking and savings accounts.
- The value of your Merrill investment accounts, including brokerage accounts, IRAs, and 529 plans.
- Balances in certain Bank of America Certificates of Deposit (CDs).
- Balances in eligible Bank of America IRAs.
Important Note: Credit card balances and mortgage balances typically do not count towards the Preferred Rewards combined balance. The program focuses on assets held with the institution.
Tip: Take notes for easier recall later.
Step 3: Unlocking the Benefits – What You Get as a Preferred Client
This is where your Preferred Rewards status really shines! The benefits vary by tier, becoming more substantial as you move up the ladder.
Sub-heading 3.1: Everyday Banking Perks
- Interest Rate Boosts: Earn higher interest rates on your eligible Bank of America savings accounts and CDs. This can make a significant difference in your long-term savings growth.
- Credit Card Rewards Bonuses: Get a percentage bonus on your cash back, points, or miles earned on eligible Bank of America credit cards. For example, a 25% to 75% bonus is common, meaning your 1% cash back card could become a 1.25% or even 1.75% card!
- Waived Fees: Say goodbye to certain monthly maintenance fees on checking and savings accounts, outgoing wire transfer fees, and even some ATM fees. This alone can save you hundreds of dollars annually.
- Reduced Loan Interest Rates: Enjoy interest rate discounts on new Bank of America mortgages, home equity lines of credit (HELOCs), and auto loans. This can translate to thousands in savings over the life of a loan.
- Preferred Banking Specialist: At higher tiers, you might gain access to a dedicated banking specialist who can provide personalized service and financial guidance.
Sub-heading 3.2: Investment Advantages with Merrill
- Reduced Advisory Fees: If you use Merrill's advisory services, you might receive discounts on advisory fees, making professional financial guidance more accessible and affordable.
- Complimentary Trades: Some tiers offer a certain number of commission-free online stock and ETF trades per month.
- Exclusive Research and Insights: Access to premium market research, investment insights, and webinars that aren't available to regular clients.
Sub-heading 3.3: Exclusive Member Experiences
- Dedicated Customer Service Lines: Faster and more personalized service when you need assistance.
- Event Access: Occasionally, higher-tier members might receive invitations to exclusive events or webinars.
Step 4: Maintaining Your Preferred Rewards Status – Staying Qualified
Once you've achieved a Preferred Rewards tier, Bank of America generally reviews your combined balances on a regular basis (e.g., quarterly or annually) to determine your eligibility for the next period.
Sub-heading 4.1: Keeping Your Balances Up
- Consolidate Your Assets: If you have investments or savings scattered across multiple institutions, consider consolidating them with Bank of America and Merrill to help meet or exceed the tier thresholds.
- Regularly Monitor Your Accounts: Keep an eye on your combined balances to ensure they remain above your desired tier's minimum.
- Understand Market Fluctuations: If a significant portion of your assets are in investments, remember that market fluctuations can impact your combined balance. Be prepared for potential changes in your tier if the market experiences a downturn.
Sub-heading 4.2: What Happens if Your Balance Drops?
If your combined balance falls below the threshold for your current tier, you might be downgraded to a lower tier or lose your Preferred Rewards status altogether. However, Bank of America usually provides a grace period or notification before such a change takes effect, giving you an opportunity to increase your balances if desired.
Step 5: Maximizing Your Benefits – Getting the Most Out of Preferred Rewards
Simply qualifying isn't enough; you need to actively leverage the benefits to truly maximize your rewards.
Tip: Pause, then continue with fresh focus.
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Sub-heading 5.1: Integrate Your Banking and Investing
- Automatic Transfers: Set up automatic transfers from your checking account to your Merrill investment account to consistently grow your assets and maintain your tier.
- Bill Pay through Bank of America: Utilize Bank of America's bill pay service to keep all your financial activity centralized.
Sub-heading 5.2: Utilize Preferred Rewards Credit Cards
- Choose the Right Card: Select a Bank of America credit card that aligns with your spending habits and maximizes the Preferred Rewards bonus. For example, if you spend a lot on dining, pick a card that offers bonus rewards in that category.
- Pay Attention to the Bonuses: Remember that your Preferred Rewards bonus applies to the base rewards of the card, making already good cards even better.
Sub-heading 5.3: Consult with Financial Professionals
- Merrill Financial Advisors: If you have significant assets, consider working with a Merrill financial advisor. They can help you optimize your portfolio and ensure you're taking full advantage of all available Preferred Rewards benefits, including potential advisory fee discounts.
- Bank of America Specialists: Don't hesitate to reach out to the dedicated Preferred Rewards customer service line or a banking specialist for questions about specific benefits or how to best utilize them.
By following these steps, you can fully understand and utilize the Preferred Rewards program, transforming your banking relationship with Bank of America into a truly rewarding experience.
How to FAQs: Your Quick Answers to Common Preferred Rewards Questions
How to Check My Preferred Rewards Tier?
You can easily check your tier by logging into your Bank of America online banking or Merrill account. Look for a "Preferred Rewards" section or a banner indicating your status.
How to Qualify for Bank of America Preferred Rewards?
You qualify by maintaining a combined balance of eligible assets (checking, savings, Merrill investments, etc.) across Bank of America and Merrill accounts. Tiers start around $20,000.
How to Increase My Preferred Rewards Tier?
To increase your tier, you need to increase your combined eligible balances with Bank of America and Merrill. This can involve consolidating accounts or making new deposits/investments.
QuickTip: Every section builds on the last.
How to Get Preferred Rewards Credit Card Bonuses?
Once you qualify for Preferred Rewards, the credit card bonus is automatically applied to your eligible Bank of America credit cards. You don't need to do anything extra.
How to Benefit from Mortgage Rate Discounts with Preferred Rewards?
When applying for a new mortgage or home equity loan with Bank of America, inform your loan officer of your Preferred Rewards status. The discount will be applied during the loan origination process.
How to Waive Banking Fees with Preferred Rewards?
Many common banking fees (like monthly maintenance fees, certain ATM fees, and wire transfer fees) are automatically waived for eligible Preferred Rewards clients. No action is usually required on your part.
How to Access Dedicated Preferred Rewards Customer Service?
Higher tiers of Preferred Rewards often provide access to a dedicated customer service line. You can find this number by logging into your online account or by calling the general customer service number and mentioning your Preferred Rewards status.
How to Know Which Accounts Count Towards Preferred Rewards?
Generally, Bank of America checking and savings accounts (average daily balance), and Merrill investment accounts (brokerage, IRAs, 529s) count. Credit cards and loan balances typically do not.
How to Use Preferred Rewards for Investment Advisory Fees?
If you work with a Merrill financial advisor, your Preferred Rewards status will automatically trigger any eligible discounts on advisory fees. Discuss this with your advisor.
How to Maintain My Preferred Rewards Status Annually?
Bank of America periodically reviews your combined balances. To maintain your status, ensure your eligible assets consistently meet or exceed the minimum balance requirement for your desired tier.
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